SANTA CLARA, Calif. Monday, August 5, 2024 – Intel Corp. announced sweeping job cuts and a freeze on non-essential projects last week, marking a significant restructuring aimed at improving profitability amid economic challenges.
Intel is facing as companies turn to rivals like Nvidia, which has gained traction with powerful AI chips.
The competition’s chips are made in the foundries of Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung.
The chipmaker reported a 1% decline in sales compared to the same period last year for the April-June quarter and issued a weaker-than-expected forecast for the second half of 2023, late June.
Reports said that the chip-making giant would eliminate more than 15,000 positions globally, representing about 15% of its total workforce.
Intel reported a quarterly loss of $1.6 billion in Q2, a sharp deterioration from the $437 million loss in the previous quarter. 1
The company says the layoffs are part of a broader cost-cutting initiative designed to streamline operations and enhance the company’s financial performance.
In addition to job reductions, Intel would pause work on non-essential projects and programs, reports said.
While the company did not provide specific details about the departments or regions impacted by the layoffs, industry analysts expect the cuts to affect a wide range of roles across the organization.
Intel stocks plummeted 20% after the company reported a $1.6 billion loss for the April-June quarter, a sharp reversal from the $1.5 billion profit in the same period a year earlier.
- intel.com: https://www.intel.com/content/www/us/en/newsroom/news/intel-reports-second-quarter-2024-financial-results.html#gs.d61prm[↩]
